Flexible Mortgages

What is a flexible mortgage?

Flexible mortgages recalculate the outstanding capital and interest (the amount you owe) on a daily basis. This allows you to make overpayments when you have money to spare, and see an immediate reduction in your loan.

Some also allow you to make underpayments when finances are tight, which will increase the interest you have to pay in the long term.

They may even allow you to take repayment holidays – a complete break from making payments as long as a reserve amount of money is in your account.

Any unpaid interest will be added to the outstanding mortgage; any overpayment will reduce it. Some flexible mortgages have the facility to draw down additional funds, to a pre-agreed limit.

Your property may be repossessed if you do not keep up repayments on your mortgage.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

This article (Flexible Mortgages) is intended to provide a general appreciation of the topic and it is not advice.

For more information please contact Centrad Limited on 01922 745400 or email enquiries@centradltd.com and we will be happy to assist you.

Article expiry: 06 April 2023